Preparing for Nvidia Earnings, SpaceX Faces Another Setback

From the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde.

And Ed Ludlow live from New York and San Francisco. This is Bloomberg Technology coming up. All eyes on three trillion dollar in video as it gears up for earnings after the closing bell. Can it profit margins weather the Chinese export restrictions?

Plus, we speak with the CEO of identity software player Octa following its own earnings, posting a conservative forecast, and.

A SpaceX Starship Rocket loss control and disintegrated during a test flight last night, the company's third setback in a row, the first ed we check in on these markets. Look gains disintegrating here too. Are currently of by about two tens percent. Look, we are treading water ahead of the all important macro event. Whether you think that's the FED minutes a little bit later today, or whether you think that that is the all important video numbers after the bell. We are on ten to Hook.

Said, Yeah, Nvidia's a little bit softer, right down four tenths of one percent on a year to date basis. It's just in positive territory, up half a percentage point.

Everyone I speak to Caro, I think.

You're right in video is a macro level event when it comes to its earnings. So let's get right to what we can expect from those earnings later today and bring in Bloomberg intelligence around this. Kunjensbarni in his earnings preview research, Kunjen says investors should expect a strong quarter and congen. A big part of that is a ramp in GB two hundred and where those GB two hundred units are.

Going definitely, I mean the demand expedition for GB two hundred from our channel checks continue to exceed what we thought before. And one key important point for this earnings is this is the most noisiest quarter we have seen in terms of Nvidia expectations. The two Q numbers have been brought down to take that impact of the China ban, but there is still a lot of confusion on that magnitude.

So we think the beat.

And the miss on the absolute basis for this quarter should be much less important. Rather, the more important thing should be the second half commentary around the GB three hundred transition, the clarity on the new China chip, and if bonus points if you can get some color on the twenty six dey Man outlook from.

Jensen and from collect Chris, the CFO. How much do you need to hear from her about the margins going back to a seventy percent or so level at the moment because they have been under pressure congent.

That will be a lot more important.

We think margin will take.

A headwind impact just like AMD did in either this.

Quarter or next quarter, but that should be just.

A one time, temporary impact.

But you're right.

If they can give any commentary in the confidence of getting back to the mid or even low seventies by Q four, that would be absolutely positive.

It's going to be busy. Well, thank you so much for Bluemergis Intelligence. Let's discuss now in Video's expectations and how they fit in with the broader market. The macro perspective. Oka Yeshioka joins usport Hodio, consulting director at Wealth Enhancement Group, and look, this is a macro event. How do you manage what Kunjan has clearly said is going to be noise on the first footing of the numbers.

Sure, Caroline, I think you know we put this into short term versus long term context. I think in the short term, yes, we might have a noisy quarter and maybe this does not allow Nvidia stock to break out of its sort of one hundred to one fifty range that it's been in over the last year. But I think over the long term, I think what we're all looking for is that macro impact of the AI theme. Is it going to continue?

Is the demand really there?

And I think the answer is going to be yes.

In the short term and the long term. For me, the question is what happens for Nvidia in China.

Absolutely, I think you know, everybody's aware of the H twenty export ban and whether or not, you know, in Video is going to potentially come up with a sort of new redesigned chip for that market. I think they're likely to work on it. They've done it before, and I think that's going to help. But that's the big question is what is China revenue going to look like for in Nvidia over the next six months as well as next year.

And ioko what's notable is ed sat at the top. This is a stop thing. Yes, you can see is rebounded hard since it's loads in April forty percent were basically flat on the air and so how are we thinking about the AI trade more broadly at this moment geopolitics? Does that counter what has been the bubble driver of the last couple of years.

Yeah, I don't know if geopolitics really counters it. I mean, clearly the tear off situation is weighing on a lot of tech companies as well, and so I think it's contributing to a lot of the noise that we're seeing here. But I think over the long term, we know that the build out for the infrastructure for AI continues, and you know, in video continues to benefit from that.

We've already heard a lot about that boy the Middle East deals, Saudi Arabia, UAE. What more can Jensen deliver for you today?

I think just the overall outlook regarding you know, additional use cases. How much are you know, in Videa's chips going to be utilized in robotaxis and you know, humanoid robotics. You know, I think those are additional areas of growth that can continue to propel in video stock hire over the long term.

What is this like for you is a moment in time as an investor, like I'm trying to think about something that's analogous and for me the Earnings call it's a little bit like Tesla and Elon in that you get the Earnings release and you read through it and you think okay, and then there's a pre prepared remarks, But actually it all kind of hangs on the Q and A and this man called Jensen, who people call the godfather of AI and some people call him something different.

Just when you're at your desk, how do you endure that? How do you play it?

Sure?

I think we're all listening for just you know, the demand cues, the supply constraints, really trying to understand the longer term sort of nature of this thematic. You know, cloud computing was something that came about and was very long and in duration in terms of its growth and it continues, right, we want to know how long AI's build out is going to continue as we transition from you know, training to inference, and you know how long that continues to benefit Nvidia.

Do you say any attention to the technology story, Like if they tell you we have a new timeline for a product, do you react to it.

Only to the extent that you know it continues to help to prop hell the AI story I mean, I think more so the more important things that came out were like the you know Envy Link Fusion, uh you know product that they talked about, just networking and allowing for additional you know, CPUs and a six to connect to the GPUs that that Nvidia produces. I think that allows for the overall AI growth story to continue for

And are you fully over the anxiety around deep Seek because today the IR one model has been upgraded, we understand did Jensen do enough in terms of clearly showing the inferences where it's at TEI okay, I think so.

I think we're seeing that across you know, many sort of uh you know, hyperscalers talking about this, and you know, I do think that the deep Seek story, although it was sort of jarring at the beginning. I think a lot of that really just came out of the fact that it came out of China. I think if it had come out of the United States, it might not have been as jarring. But again, you know, I think this really just sort of expands the overall uh, you know, addressable market.

I think the sensible place to end it on it is a sort of chicken and egg debate. What's more important for investors to get a long term picture on Nvidia or the hyper scalers and their CAPEX figures, because we've kind of done a juggle between the two.

It's a great question. I think it's the CAPPAC spend. You know, one of the things that we continue to monitor is the overall CAPAC spend from the hyper scalers, and it continues to grow. The growth rate has slowed down, and we expect that to slow down going forward, but that spend in terms of dollars continues to be very large, and that will propel the overall infrastructure and the speed at which we all adopt.

Ai Jensen one would disagree with you. He'd say, I told everyone what I'm doing for five years, so they can make better plans. Oyoko Yoshioka, portfolio consulting director at a wealth.

Enhancement group, thank you very much.

Octa shares down nearly fourteen percent today after the maker of identity management software gave a conservative forecast for the futures. Ox's first quarter revenue is up twelve percent year over year, and subscription baglocks suggests a longer sales cycle. That's according to our own Bloomberg analysis. We're joined now by OCTA's CEO, Tom McKinnon. Let's get the market, Cee Bicket out the

Well, I think we're talking about guidance on very short term. So one quarter is a very short term, and so yeah, we would look at the world right now and we say there's some uncertainty with tariffs and trade policy and economic the future of the economy and the short term, and so we give a prudent guide, but that doesn't change our outlook for even the medium term. The long term. We're very bullish on the opportunity, very bullish on the business.

We're talking about identity and access management, like that's the field you're in. But one tailwind that I keep hearing about is this issue of AI memory and AI agents. In other words, if an AI agent is going to be super useful, it needs to talk to many other agents, but it means the person, the human at the center of it, has to give away a lot.

Of their information.

That may be an area where you come in and make it more secure.

Is there an opportunity to Well, what.

Identity and access management is about is making sure the right people have access to the right information. And traditionally that's been business applications, web applications, mobile phones, mobile applications. And what's happening in this AI revolution is that now machines are accessing information more and more than ever. So it's not only about getting the people the right access, but you have to get the computers the right access.

And we're very good at that.

We have thousands and thousands of customers that trust us every day to make sure that their machines and their software systems have access to the right information and now AI is turbo charging that you're getting. We're moving in

What about the public sector? How much do they want it? Because I know you've secured some decent deals with them of late.

Yeah, it's no different.

Every government agent is trying to get more efficient and more effective with their IT and the AI revolution is part of that. In fact, in Q one, four of our top ten deals were with public sector agency, so we're seeing very robust demand there and it's for the same reason they need to be secure. Our business is about identity, and what people are understanding is that identity is security.

To be secure, you have to have a good.

Identity system and then when you start to do the agentic workloads and move these projects from prototypes and proofs of concepts into production, you really have to control access to the data. And that's what our customers are telling us we can do for them.

And of course the drive for DOZE for efficiency was about tech adoption, but it is also about cost cutting. How much do you think that there is this head wind, this caution around well, maybe a pushback on some of the contracts that you have within the public sector.

Well, like I said, four of our top ten deals and two of the top three deals in the Q one we're in the public sector. So what you're seeing, especially at the US federal level, is organizations are looking to be more efficient and more effective, and that means looking at all their spending. But most of their spending is on legacy technology, so they're managing on premise software and their pain massive bills to people to support and

The market for US.

Octa has been trading for several years as a public company. When was it founded just very quickly two thousand and nine. He just talks about legacy tech. Could you just talk a little bit about what doing business is like in this environment? So there are lots of new names in this field. There are lots of new names who want to be your customers, and they're kind of used to negotiating with other people they may or may not know

Well, I think the most exciting thing about the current age of technology is that we are very established.

We have two point six.

Billion dollars of revenue and growing quickly, and we're very profitable. In fact, in Q one we had record profitability. So in our space, we are the clear leader our space of independent and neutral identity management. And now there's this AI revolution and it's opening up vast new markets for every technology company. So it's like, how do you defend what you've done very well while at the same time investing for the future and innovating to making sure you

At the top of the segment, we reference subscription backlogs. Why is there a backlog and how does it get unfolded?

Well, we're a cloud service, so people pay us a recurring subscription, so we prove value to them and they reinvest in us over a period of the contract duration. That's the way business works now, and it's a good trade off between value delivered to the customer and a vendor like us being able to capture that value we deliver.

Oltor CEO Tom McKinnon, we really appreciate coming on and talking back against perhaps some of the narratives around the DOGE issues. Apple set to release a dedicated gaming app across its devices later this year. It's all according to sources. The feature is set to debut at this year's Worldwide Developers Conference on June ninth, just a few days after Nintendo's switched to release from All. Bloomberg's Mark Gunman joins us now and is this defense? Is this offense, Mark.

Ye, thank you for having me. Apple has been working on this for quite some time.

Over the past few years, they've been trying to push iOS and mac os as better gaming platforms, and you know, the Mac has come a long way. There are new porting tools for developers to move their apps over from PC to Mac, but there's still a long way to go. You've seen all sorts of different cloud gaming services and on device gaming services over the last few years.

You've seen some from Google.

Microsoft has tried this, and what Apple's trying to do with this app is create one unified place where developers.

Can pitch their apps with new editorial.

Content, a unified place for gamers on all of Apple's devices to go to when they want to launch a game, view achievements, view leader boards, connect with other players online. And so this new service is Apple Games application that will be pre installed on Apple's devices beginning at the end of this year, will be that new place to do so.

Mark I've struggled for many years with gaming through macOS.

I find this so interesting.

On the titles themselves, we're not saying though, that Apple is going to become a developer and publisher of games specific to its own net platform, right, it is still a marketplace and a way to monetize access through other people's.

Software and titles.

Apple bought a two person game studio. I believe the app is called Sneaky Sasquatch. It's one of the more popular games on the Apple Arcade subscription service, So they bought that. But I don't anticipate them to go a lot further than that in terms of in house games. Maybe they'll buy a few other smaller studios, but I don't anticipate them to go down the route of developing

They want people playing more.

Games, they want people downloading more games, they want people buying more subscriptions within games, and having a unified place to access all those titles could potentially help with that.

Gaming is important to Apple's business model, But how important is Apple to the gaming industry? What sort of market share does it have give us the context mark?

You know, if you think about it, the iPhone is probably the most popular gaming device.

On the planet.

You can now get TRIPLEA titles on their resident Evil Fortnite is back on the app store now after a few year reprieve after that lawsuit hit new levels with the.

Well technically jump in here, Carro, because I think we had a technical issue on Bloomberg technology, but thanks to Bloomberg's Mark German, another story we're tracking. YouTube has spent the past few years trying to make itself the centerpiece of the living room, and now creators are finding themselves making longer shows to meet viewers where they are in front of their TVs, where YouTube is now the TV service of choice for viewers.

Of all ages.

Bloombergs Lucashaw is here for more in his BusinessWeek piece That's out there. I found this so interesting in the context of like different genres. I think about where I consume and what I consume on YouTube. What is the kind of conclusion reached in this Business Week piece.

Leucas well, I think for most of YouTube's existence, people thought of it as a short form video service that people watched probably initially on you know, laptops and desktop computers, then primarily mobile phones, and over the last three to five years there's been a pretty dramatic shift where the television is now the primary device that people use, at least in the US and increasingly in other countries.

And as a result of that.

Or you know, a little bit of a chicken in the egg scenario, but the length of video that people are watching is getting longer, whether that's a three hour Jo Roken podcast or a twenty five minute sitcom, and the latter is something that really interested me because I also think most people think of YouTube as a place for sort of crappy, unscripted stuff, and increasingly there is scripted programming that people actually watch on YouTube.

Slopfest, that's what you say in the piece, and this idea that it has slop that perhaps others in the industry try to portray. But how have they pushed back against that? How are we seeing that reverse in terms of trends or not?

Lucas Yeah, I mean, look, there's been this ongoing debate as to whether there is quality programming on YouTube. Right, they had what were their brand safety scandals a little less than a decade ago, where you had ads run against unsafe materials, you had a lot of their biggest stars get in trouble. You had Jeffrey Katzenberg start this service Quibi that was supposed to be you know, YouTube, but YouTube length videos with sort of Netflix budgets that

But I do Lucas just real quick, I couldn't name though a single YouTube original, Like I have HBO Max because of the Last of Us. I go to Apple TV because of Silo. And that's the reason I have all of these different platforms and subscription bills every month.

What's YouTube doing there?

Like some name recognition programming, original programming, Well, but have.

You heard of have you heard of Hot Ones or Mister Beast?

Yeah, yeah, it's an original last but good good example.

Right, So, look, we're not at the point where they're making a Last of Us for YouTube. The budgets are too big for that to make money.

On YouTube.

I think there's a belief that we may eventually get there, certainly with the use of AI bringing the cost down. But that is the kind of the big white whale for YouTube. If you will, or YouTube would tell you that you can still watch the last of us on YouTube, you'll just do it via max and kind of buy max as from the YouTube Google channel store the data.

It talks Loca sure, so great to have you. It's a great business leek piece. Welcome back to BlueBag Tchnology and Caroline.

Hide in New York Low in San Francisco. This is what financial markets look right now, zeroed in on the technology sector.

We are basically, as.

Caroline said at the top of the show, treading water. Were flat on the Nasdaq one hundred. We're slightly softer on the Philadelphia Semiconductor Index. And that story is almost solely in Nvidia, which reports earnings after the market close. It's a stock that is treading water right now, completely flat on a year to date basis. It is higher, but marginally less than one percentage point.

And what we're looking for.

Is some sense in the short term the China story, how have sales been impacted?

Remember a five point five billion.

Dollar right down in the quarter gone relating to the lack of being able to sell age twenty. What does that look like going forward, Gareth, It's.

Going to be an interesting one. And as you say, like all eyes on that report tonight, but that attention is actually spilling over to others in the AI supply chain head including Napatas Semiconductor, a maker of power efficient gallium nitride chips that go into everything from laptop to evs, and now data centers. Last week, news of a partnership with NVIDIAs and Navatas shares absolutely soaring one hundred and

Good question, Well, data centers are completely changing the world as we know it. It used to be data centers required just a few hundred watts per processor or ten to twenty thousand bots in a server rack. That's the building block of a data center. AI is changing that completely. We're now talking about hundreds of thousands of watts and in the future of megawatt per server rack, how are we going to deliver that kind of power? Silicon chips

Gene, as we mentioned, been selected by in video for this partnership. Going forward, how's your supply chain? How's your ability to suddenly meet this level of demand.

We have lined up significant capacity. We've seen this coming for the last few years. We've been working on gallium nitride and solding garbage for over ten years. We have excellent supply chain partners TSMC with gallium nitride, x FAB with Silding carbide. Significant capacity available today in six inch, going to eight inch in the coming years. So we've got a lot of capacity lined up.

Now. We're working with Nvidia on the development side.

There's a lot to do in development to enable what they call the eight hundred volt data center. This data center architecture is not only going to save energy, use.

Our tip to make it more energy efficient.

It's going to enable that megawatt capability to ten twenty times more powerful to held the future AI processors for the next few years.

Gene, Your company's stock has been on a wild ride, hasn't it since the announcement of the deal, largely by association probably right with the name in Nvidia. But can you give us something tangible, like what's the dollar value of this relationship to Navitas? What's this sort of sales growth trajectory just from the agreement you put in place with in Vidia.

Well, we're already shipping our high voltage GAN chips and sling CARBA chips into data centers today. We have about seventy opportunities in the acd DC converter for the traditional data center of today. That's sort of growth and that's going to drive some short term growth to the company. But this announcement is really about tomorrow. We're going to spend the next year in development within Vidia and others creating the key technology or building box for this eight

We said at the top of the show that you've added almost one billion dollars of market cap in the last seven trading sessions and the company's values tripled.

Is it, CEO, what's that like for you?

Well, we went public a few years ago as an early stage public company.

I've learned to ride the highs and.

The lows, and I get too excited about either extreme.

So I think the market's going to do what it's going to do.

But we keep our heads down focusing on building a great next generation paras semiconductor business. If we can keep partnering with companies like Nvidia and key segments, data center is a top one for us. We're also working on mobile chargers, We're also working on electric vehicles, changing solar inverters.

Partnering up with some of these key guys, that's what gets me excited.

That's what's going to drive our business and We're super excited about the video one to really create these future data centers.

Jeane, how are you navigating also the politicization of all of this, the idea that people want US data centers, but they're also willing to then go in partner in the UAE in Saudi Arabia, and issues around access to China in that way, how you thinking about the global footprint you'll have.

Yeah, really is deglobalization in such a big way. I think we're starting from a good place. Taiwan is a great central location neutral if you will, to serve the world. TSMC is the biggest and best out there. For the gallium nitrid chips, our slicing CARBD at XFAB, it's actually manufactured right in the United States in Texas. There's a lot of work to do here in the United States to upgrade the grid, and most of the data centers

Well, we're not not going to stop there.

We're looking at bringing up wafer PAB and manufacturing partners all around the world, so we have geographically diverse footprint, so we can deal with whatever the geopolitics are as well as whatever the localization needs are.

So there's a lot to do.

In our expansion. We've got a lot going on to expand that footprint.

Geane, you said this partnership with vide bez fruit late twenty six early twenty twenty seven, does that mean that you will be involved in some of the projects in video announced in the Gulf State Saudi and UAE and some of its onshoring activity here in the United States, projects like Stargate for example.

Well, we'll work at the power chip and power module or power supply level, so we create kind of these building blocks, the building blocks that move that power around, allow the power to happen, happen efficiently, keep the data centers cool where they take those building blocks. The beauty is I don't have to customize them from one region

Never tast CEO Gen Sheridan, thank you so much for joining us on Bloomberg Technology Caroline Time now for.

Talking Tech ed first up Chan is said to be considering switching up its planned IPO offering, moving from London to Hong Kong. That's coording to sources. The fast fashion retailer is said to have shifted its plans because the approved process is dragged. She initially planned a list in the United States, but was ultimately derailed amid supply chain and labor scrutiny. Plus, Instacart has named Chris Rogers its

ED and we stay with Elon Musk, his SpaceX Starship rocket launched last night but exploded mid flight, marking the third consecutive setback for the company. Still, Musk seemed enthusiastic despite the outcome, writing on X a lot of good data to review. Launch cadence for next three light flights will be faster.

For more.

We're joined by Bloomberg Sana Pashankar, who was up late covering the minute by minute of this ninth scheduled test flight.

I think it's really important rights under the context.

That the super heavy booster, as a part of the Starship combined system, was a reflight. It had flown on the seventh test flight. And the way that SpaceX is always going to say is that it's success because of the data gathered give us the kind of high level details we need to know about mission nine.

Yeah, totally.

So essentially, you know, everything seemed to be going smoothly

I sound know.

What was interesting is we had been expecting an all hand style talk right as well, but that seemingly didn't occur. What are we anticipating in terms of signaling for the next steps, when do we push forward? If they are going to deem it in success story from what they've at least learned on the test.

Yeah, totally.

Yeah, so we were expecting an all hand style talk after the launch, and there was just no mention of it, no mention of canceling it or if it would happen.

At a later date.

But yeah, so SpaceX really does emphasize this philosophy of flying, failing and then fixing it. So that's kind of what Musk was saying about using the data to iterate again, make those fixes fly more. And so recently the FAA authorized that SpaceX.

Would be able to do more launches.

So I think they're really thinking about ramping up the launch cadence, learning more, flying more, and so we can expect a lot more test flights in the future.

Satavashanka, we thank you very much.

Indeed, NATO has proposed including cybersecurity as part of its new defense related spending target of one point five percent of GDP. Here in the US this week there is a House Committee Homeland Security field hearing on the future of America owning the cyber space. Wendy Whitmore, Palo Alto Networks chief security intelligence officer, is a witness at that hearing and enjoins US NOW in San Fan Francisco. Clearly for Western alliances, but also America, the role of cybersecurity

Yeah, so we're excited that the hearing is happening in Solicon Valley and the focus of the hearing today is on technology innovation. So I think there is no organization that's doing more of that, especially when it comes to AI than Palo Alto Networks and will be really focused on what is it that the government needs to do to make security more actionable, and one of those areas

You said the president should have which indicates to me that when in the cybersecurity context, this hearing is a step in the right direction.

But you feel that.

The administration in our government generally can do more to own cybersecurity on behalf of the nation.

Well, I think the challenge that I was getting at, and it's certainly within the government, but also within civilian organizations. Is security is too complex and visibility is not centralized. And that's really what we're focused on is, Hey, let's create technological capabilities that then drive these outcomes so that those answers are clear, precise.

Wendy, that dashboard, I'm so intrigued just to what it would show, because if I'm right, the numbers are extraordinary. That pallel to networks blocks every day thirty one billion cyber attacks. So what ultimately would the transparency look like?

You are right?

And one statistic that's I think even more saggering is that up to nine million of those every day are brand new and have never been seen before. So what we would encourage that dashboard to look like is focused on the time to detect and the time to respond.

We work every day.

With organizations throughout the world to drive those times down, and in one organization we recently worked with, they took that meantime to respond from three weeks down to nineteen minutes. And that time matters. When you can get it down into a number of minutes, you are now changing an outcome because that attack can no longer be successful.

I mean the Committee on Home Land Security cools this discussion innovation Nation technology to secure cyberspace. The innovation is it all about AI at the moment, Wendy.

It's certainly a huge part of it. Right We at Palaza Network spent one point eight billion dollars last year alone in R and D, much of it focused on AI. So we're absolutely looking at how we can use AI to turbocharts defenses and make sure that we're driving the time down and that organizations throughout the world are also implementing AI securely.

In the broader theater of defense technology, we often talk about how the private sector and public sector work together. For example, different private organizations and reial on the hardware side and paleteer on the software side, we'll work with the National Defense Apparatus. How does that work in the sort of software cybersecurity space is a coalition of private companies and government entities.

Well, what's critical, as you point out, is that those partnerships remain stronger than ever between the government and between civilian organizations. And so what we're focused on is how we can provide actionable data and insights into our government partners and agencies to make sure that they can continue the defense of the country.

What are the main risks that they currently fend off? For laymen such myself, it's still phishing that seems to be incredibly purposeful since JENAI has come on the same But where are the threats particularly coming from in what form?

Phishing is more powerful than ever, as you mentioned, because JENI has made JENAI has made communication capabilities even you know, less of a barrier to entry. But you know, I think what we're seeing our attacks from throughout the world, certainly from our adversaries in countries like China and Russia,

If there is one message you want to get across to those committee members today or that you will challenge them on, what is it, Well.

It's an AI is a key investment areas as a country and all of our allies to have successful defense. So we must be able to turb our charge our defense with technologies that fuel that.

Wendy whitmore so good to have you ahead of that testimony. We appreciate it. Palo Alto Networks. Meanwhile, let's talk about deep Seek said it has upgraded the R one aim a eye moodel that it has and that of course, helped propel the Chinese start up to global prominence earlier this year. It described it as a quote minor trial upgrade and told users that it can start testing it. That's according to a company representatives post in an official

Ed okay, Let's check back on Nvidia. The stock is a touch higher, basically flat and treading water ahead of the earnings being posted after the market.

Bloomosei and King is here.

Who leads our coverage of semiconductors, and I think it's really important to clarify for Wall Street, for our audience, and also for us here on bloe Blog Technology the situation with regards.

To H twenty in China.

In the quarter gone April, Nvidia took a five point five billion dollar right down on the asset or inventory and its commitments to sell that product into China, which it now can't sell into China. But if you look at the estimates for the fiscal second quarter, that may not be reflected this lost revenue opportunity because of the China situation.

Yeah, that's absolutely right.

If you look at the most recent reports that try to factor in what the effect might be going forward, they would indicate that can Census, which at the moment is at forty five point five billion in revenue for the quarter, probably should be maybe two three billion dollars lighter than that, maybe even more so, depending upon how you slice and dice that China revenue. So that's something that people need to be aware of as they look at the numbers when they get reported later today.

I think the word I keep seeing is noisy. So as investors and you and I and ED try to weave ourselves through what the numbers actually say. What is it that Jensen and Colllect actually have to say.

Yeah, I mean, noisy is the right way to look at it. I mean there are those out there that saying, hey, look, we shouldn't be over indexing on this because guess what in video has so much fundamental demand. If it just increases production of other chips for other markets, and these are more expensive chips, we can more than make up for this. So there is kind of an ongoing debate. That debate, as we've just established, is not resulting in a lot of clarity in terms of firm XPS.

Jensen is going to talk about all of the industries that benefit from invidious technology, robotics, healthcare, the end result.

Of large language model development.

But in the quarter gone he flew around the world and did a lot of deals, the Middle East of the Golf being one example. Do we expect him to kind of give us a real sense of how much money this company is making from those deals?

Yeah, I mean a lot of them are sort of tentative flash future memorial understanding type arrangements, So it's unlikely that he'll give those as a specific target, and he tends to not want to do that for obvious reasons, but you're right, he'll talk in broad terms about the future of AI and how that's going to increase general demand for his products going forward. The near term is probably going to be a little bit more choppy.

Bloomberg's and King's going to be busy. Thank you. Tuning later today, of course, there's a special edition of BlueBag Technology and breaking down in videos earnings with at CEO Josan One. Tune in six thirty pm Eastern three thirty pm specific and that does it for this edition of bloomag Technology ED.

Yeah, don't forget to check out the podcast.

You can find it on the terminal as well as online on Apple, Spotify, and iHeart. From New York City and San Francisco, this is Bloomberg Technology